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The Monetary policy of the United States has not been the same since the 2008-2009 international crisis. Following the crisis, given that the federal funds interest rate - the conventional monetary policy instrument - fell to almost zero, the Federal Reserve (FED) had to resort to two...
Persistent link: https://www.econbiz.de/10010990290
We study a flexible price IS/LM economy in which the money supply and interest rate play the role of monetary policy instruments. If the central bank sets the nominal interest rate, the ambiguity in the price level is manifested. However, the equilibrium price level is permissible, if the...
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This paper examines the effects of the demand management policies and external shocks on the trade balance and real income in a small open economy. In addition to the Marshall-Lerner condition, it analyzes the conditions that must be met in so far that a currency devaluation may improve the...
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Recent economic crisis started from the American Housing. In 2005, the price of housing started to grow and for gaining more profit, the banks inclined to housing and provided applicants with lots of facilities. With the burst of price bubbles, intense reduction of prices occurred in the housing...
Persistent link: https://www.econbiz.de/10009295281
The paper investigates the impact of delayed tax revenues on the fiscal policy out-comes. Choosing the delay as a bifurcation parameter we study the direction and the stability of the bifurcating periodic solutions. We show when the system is stable with respect to the delay. Some numerical...
Persistent link: https://www.econbiz.de/10005836580
controversies of monetary economics. Keynes’s liquidity preference theory remains at the core of the center. This paper starts off … with analyzing the inherent logic of liquidity preference theory and presents a new interpretation of the theory in a more … crucial and unsolved mistake in Keynes’s liquidity preference theory, i.e. interest rate is indeterminate, which is revealed …
Persistent link: https://www.econbiz.de/10005773161